Bellway, the U.K.-listed house builder, has issued a warning regarding a decrease in home completions for the fiscal year ahead. This comes after the company experienced a decline in housing revenue in line with its guidance for fiscal 2023.
Revenue Figures
In terms of numbers, Bellway reported that its revenue for the year ended July 31 amounted to approximately £3.4 billion ($4.33 billion). This figure indicates a slight decrease from the £3.52 billion achieved in fiscal 2022.
Decline in Housing Completions and Selling Price
The number of housing completions witnessed a decline as well, dropping from 11,198 to 10,945. Additionally, the average selling price also experienced a slight dip, falling from £314,400 to £310,000.
Factors Impacting Operating Margin
Bellway cited several factors that are expected to contribute to a decrease in its underlying operating margin for fiscal 2023. These factors include build cost and overhead inflation, extended site durations, and an increased utilization of targeted sales incentives. As a result, the company anticipates that the underlying operating margin for fiscal 2023 will be approximately 16%, down from 18.5% in fiscal 2022.
Outlook for the Current Financial Year
Given the current level of the order book and the prevailing low reservation rates, Bellway anticipates a significant decrease in legal completions for the current financial year.
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